Financial Analysis: Root (NASDAQ:ROOT) and ICC (NASDAQ:ICCH)

Root (NASDAQ:ROOT) and ICC (NASDAQ:ICCH) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Root and ICC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Root	-1.56%	-9.81%	-1.12%
ICC	7.13%	9.58%	3.01%

Insider & Institutional Ownership

59.8% of Root shares are held by institutional investors. Comparatively, 46.5% of ICC shares are held by institutional investors. 11.7% of Root shares are held by company insiders. Comparatively, 24.1% of ICC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Root and ICC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$455.00 million	2.53	-$147.40 million	($1.23)	-62.07
ICC	$92.54 million	0.79	$4.26 million	$2.22	10.52

ICC has lower revenue, but higher earnings than Root. Root is trading at a lower price-to-earnings ratio than ICC, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Root has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500. Comparatively, ICC has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Root and ICC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	0	6	2	1	2.44
ICC	0	0	0	0	0.00

Root currently has a consensus price target of $59.13, indicating a potential downside of 22.56%. Given Root’s stronger consensus rating and higher possible upside, research analysts plainly believe Root is more favorable than ICC.

Summary

Root beats ICC on 8 of the 15 factors compared between the two stocks.

About Root

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.

About ICC

ICC Holdings, Inc., together with its subsidiaries, provides property and casualty insurance products to the food and beverage industry in the United States. It offers commercial multi-peril, liquor liability, workers' compensation, and umbrella liability insurance products. The company markets its products through independent agents in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Utah, and Wisconsin. ICC Holdings, Inc. was founded in 1950 and is headquartered in Rock Island, Illinois.